Nifty Hourly Chart

Since from past two trading sessions we were expecting a target around 4950. Today spot Nifty made a high of 4955 and closed at 4860. In the above graph you can observe that Nifty has tested 4955 thrice but unable to cross it. So going forward 4955 is an important level to watch for.

Nifty might take support at the descending trend line. This support may come around 4850-4830. If this level is breached then Nifty can test previous bottom 4788. So, intraday traders can short Nifty below 4830 for a target of around 4788 but positional short is not advisable.

Traders can observe in the chart that now the trading range is 4955 to 4788 and market may consolidate in this range for sometime before giving a breakout.

Nifty Daily Chart

An interesting observation in Daily chart is Nifty has formed a candle stick pattern called 'Bearish Engulfing Pattern'. A chart pattern that consists of a small  candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small  one. This is a candle stick formation which indicates reversal of the trend or beginning of downtrend. But as per my knowledge is concerned this pattern is highly effective if it occurs in peaks rather in bottom.

So wait for the breakout below 4788 on closing basis to take positional short.

 

LT Hourly Chart

Today during market hours short position in LT was initiated at Rs.1173.50 and profit was booked at Rs.1161 and a quick profit of Rs.3125 was earned. I hope my readers are happy about that !?

In the hourly chart of LT futures you can notice a triangle. From past few trading sessions LT has traded in a range and the range is getting narrower. At one point or the other this range is expected to break and we may witness an explosive move in LT.

You can also notice that Rs.1161 was acting as major support and even though LT fut made a low of Rs.1156.50 it closed at Rs.1165.50. So LT is a must watch stock and only the breakout should be traded.

INR/USD

The free fall of Rupee against dollar has drawn the attention of everybody starting from politicians to common man.

Today Rupee reached a low of Rs. 55.47 against dollar. The targets which were mentioned yesterday Rs.55.85 and 57.80 will remain the same. Please note that this is not a trading recommendation.

Open Position

The only open position is 10 shares of SBI bought at the rate of Rs.1907.

Intraday trading updates

Position                   Type        Qty    Buying Price         Selling Price       P/L

Nifty 4900 put         Short        50              60                          129             3450

Nifty 4800 put         Long       100             79                          28.60        ( 5040)

Hindalco                  Long       400            109.90                   108.35         (620)

SBI                          Long         10             1907                     1950             430

LT Fut                     Short       250             1173.50                1161            3125

The above list also includes delivery positions.

Thought for the day

‘Be content with what you have; rejoice in the way things are. When you realise there is nothing lacking, the whole world belongs to you.’ ~Lao Tzu


Post market report and future estimates will be published after night 8.00 o clock.

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